Hengyuan Refining Company was testing the RM5.15 level in its latest session. It may experience a technical rebound upon successful recovery above this point with a target price of RM5.50, followed by RM5.73. Meanwhile, it may continue sideways if it fails to cross the RM5.15 mark in the near term. In this case, support is anticipated at RM4.72, whereby traders may exit on a breach to avoid the risk of a further correction.

Trading Call: Buy on technical rebound above RM5.15

Target: RM5.50, RM5.73 (time frame: 3-6 weeks)

Exit: RM4.72

Source: AmInvest Research - 6 Dec 2018